Once dividend is assured, stakeholders do not care about how the company is run and which are the social costs of the dividend (unfortunately)
Emerson is not an industrial company
Emerson is a financial company who makes finance through industry
Once the long term perspective of the business is destroyed no problem, the business is sold and a new business is bought
Look at what happened in the last 10 years
Buy a business, cut cost, squeeze, fire high cost people, move activities to low cost country, let experienced professional layoff, and sell the business, then buy a new business
No investment and no interest in skilled people
This is the strategy
2 replies (most recent on top)
With capitalism you can start from nothing and create values for everybody: employees, customers, shareholders and managers. Or you can buy running business and create values for top managers and shareholders, destroying value for the employees of the acquired business. This the difference between companies like e.g. Apple or Tesla, and Emerson. A difference based on values.
There's nothing wrong with that. It'a called Capitalism!